According to media reports, Fannie Mae recently reached a $53 million settlement with 19 housing organizations across the nation over what the housing organizations alleged were racially discriminatory maintenance and marketing practices of foreclosed homes.
At issue was Fannie Mae’s alleged failure to properly maintain and market foreclosed homes in predominantly Black and Latino communities during the period of July 2011 through October 2015.
The housing organizations allege that they conducted an investigation into 2,300 properties owned by Fannie Mae called “real estate owned” properties. The investigation purportedly found that the agency failed to maintain REO dwellings in communities of color according to the same standard as the agency maintained REO dwellings in predominately white neighborhoods. In Milwaukee, for example, the organizations alleged that roughly 60% of REO properties in communities of color had five or more maintenance deficiencies or problems, compared to just one-third of the REO properties located in predominately white neighborhoods.
Funds from the settlement will reportedly go towards revitalizing neighborhoods negatively impacted by the agency’s practices.